Red Flag! Do not Sign up for Medigap Plan F

If you think this topic is quite dramatic, I guarantee you it is not. The following information is important for anyone considering a Medicare Supplement plan F. Plan F has long been the most popular of the standardized plans, and it has a purpose. However, you should explore all your options and become aware of the potential dangers before you own one.

I would also like to share the following information with a little background information about myself. I worked for 27 years on the senior market. For much of that time, I worked in Medigap Plan Design and Pricing. I am an expert in the industry.

New Agents and Lazy Agents Sell Plan F Medicare Supplements. This is true. Insurance agents love selling a Plan F. He pays a higher commission and most buyers have usually heard of it from a friend. Because it’s so popular, it’s a much simpler presentation.

Be careful with agents who immediately urge you to choose plan F. Making a blanket statement that Plan F is the best is wrong and irresponsible. If they say that it’s the “Cadillac Plan” because it covers everything, then hang up. Listening to the “Cadillac Plan” sounds great, but it comes at a price.

Insurance companies also love Plan F. It has benefits that you will probably never use, and others that are very profitable for the company. Therefore, they always advertise the plan F.

If the only difference between a plan F and a plan G is the part B deductible, why is the price difference so much higher? The Medicare Part B deductible is currently $ 166 per year. However, if you compare plans, it is not uncommon to find Plan F rates between $ 300- $ 600 higher than Plan G. Insurance companies call this difference a “convenience fee”. Why not keep the “Convenience Charge” in your wallet and pay the deductible?

Excess fees are not a big deal. The reality is most doctors accept Medicare Assignment and it is easy to confirm if your doctor is doing it or not. Why would you pay for this service if you do not need it?

Even worse, in some states it is illegal for doctors to claim Medicare Allowable, but many agents continue to sell plan F to their clients.

Do not get caught in a Medigap Plan F! By far, this is the most convincing reason to have no plan F. Plan F will expire in 2020. Anyone who already has this plan will be allowed to keep it.

Do not keep this plan! New sales will cease, there will be no younger and healthier people entering the plan and outweighing the costs of the older insured. The prices must rise. As interest rates rise, anyone who is healthy enough to meet the underwriting conditions will move to a new plan. This will make the situation worse.

If after 2020 you get trapped with Plan F, you might see ridiculous year after year rate increases in double-digits. A similar situation existed with Plan J after it was withdrawn from the market in 2010.